Suit Alleges American Home Failed to Meet Pension
Promises

In a press release from their lawyers, the plaintiffs in
the class action lawsuit allege that they were promised
numerous benefits when their former company, Principal
Financial Group’s residential mortgage lending business,
was sold to American Home in 2003. Approximately 400 of the
company’s employees went to work for American Home at that
time.

The suit alleges that at that time, American Home, in
writing, promised to honor their years of service with
Principal towards the vesting requirements for their new
401(k) retirement savings plan. It also promised to
contribute extra money to the plan to compensate the new
workers for an additional retirement benefit they had with
Principal.

The suit alleged that these written promises were not
kept. Instead, they allege, the company extended vesting
requirements and has not yet contributed extra amounts to
the plan. The written promises were to be implemented by
spring of 2004, the suit alleged.